hyperion workshop capital outlay request submissions

HYPERION WORKSHOPCapital Outlay Request Submissions

Agenda:• Overview of Capital Improvements Plan

process• Evaluation Guidelines• Cost Estimation & Phasing• Submittal Expectations• Creating a Decision Package• Next Steps• Question & Answer

The Capital Improvements Plan

Authority• “State Capital Improvement Planning Act”, 62 O.S.

§900 – 908• Long Range Capital Planning Commission

• Staffed by OMES, Division of Capital Assets Management – Planning

• Assisted by the State Bond Advisor’s Office

• Oklahoma Administrative Rules, Title 428


Goals• Systematically plan, schedule, manage, monitor

and finance capital projects to ensure efficiency and conformance with state strategic objectives

• Guided by the LRCPC’s Guiding Principles for Real Property Asset Management and the State’s new performance measurement targets


Who participates?

• All state governmental entities, defined:“The State of Oklahoma or any agency, board, commission, authority, department, public trust of which the state is the beneficiary or other instrumentality of state government, other than a public trust with the state as a beneficiary whose jurisdiction is limited to one county…”


Who is exempted?

• The Ordnance Works Authority• The Commissioners of the Land Office• Public trusts with a jurisdiction limited to one

county


How is the plan funded?

• Maintenance of State Buildings Revolving Fund• Sales proceeds from real property transactions• Direct appropriations

• Other sources• Agency revolving funds• Federal funds• Grants, gifts & donations• Section 13 and Section 13 Offset

The Planning Process

Submittal

Review

Refine

Evaluate

Approve

Submittal• Agency’s internal development and prioritization

of requests• By June 30: Enter requests into Hyperion

• Technical aspects of submission will be covered later today


Submittal

Review

Refine

Evaluate

Approve

Review, Refine & Evaluate• July-October• Review by DCAM-Planning

• LRCPC Guiding Principles• Evaluation guidelines• Agency strategic plan• Statewide performance measures

• Submittal may be returned to agency for edits or additional information

• LRCPC:• First Draft in September• Final Draft in November


Submittal

Review

Refine

Evaluate

Approve

Approval• LRCPC

• November/December

• Legislature• Plan submitted on or about December 1• Project list submitted within first 7 days of

session

• 45 days to review project list• May disapprove in whole or by line-item

through a concurrent resolution• If no resolution by 45th day, plan is considered

approved

Implementation

• If approved, project implementation begins July 1st (one year after submittal deadline)

• DCAM- Construction and Properties (CAP) manages implementation of approved projects

Timeline2015 2016 2017

June 30: Request deadline for FY2017 CIP

December 1:LRCPC submits

CIP to Legislature

1st 7 days of session:LRCPC submits FY2017 project list to Legislature

45 days:Legislature

considers FY2017 CIP

July 1:FY2017 CIP Implementation begins


1st 7 days of session:LRCPC submits FY2018 project list to Legislature

45 days:Legislature

considers FY2018 CIP

July 1:FY2018 CIP Implementation begins


Evaluation Guidelines

What is a Capital Project?

• A planned expense for a facility or physical item requiring a minimum expenditure of $25,000, having a useful lifespan of five years or more, and meeting one of the following definitions:

• Involves the acquisition or construction of any physical facility;• Involves the acquisition of land;• Involves the acquisition or construction of public utilities;• Involves the acquisition of major equipment or physical systems, such as computer technology, communications systems, major specialized vehicles, etc.;

What is a Capital Project?

• Involves modifications to facilities, including additions to existing facilities, which increases the useful life of the facility, and/or• Capital maintenance or replacement projects on existing facilities, which are defined as non-recurring projects to repair, maintain or replace existing facilities for the purpose of protecting the state’s investment in a facility and minimizing future maintenance and replacement costs. To be considered a capital maintenance project, a project must have an interval between expenditures of at least five years.

Capital projects do not include normal operating expenditures for salaries, routine maintenance or repair, or activities associated with or consumed during a single fiscal year.

Evaluation Criteria

A. Impact on Capital Costs• Describe the project’s ability to reduce capital

costs by avoiding the snowball effect of deferred maintenance

Considerations:• Total cost of project• Anticipated savings on capital expenses• Will delaying the project escalate costs beyond

normal inflation?

Evaluation Criteria

B. Impact on Operating Costs• Describe the project’s impact on the agency’s

operating budget.

Considerations:• Will the project increase/decrease:• Operating costs?• State revenues?• Productivity?

Evaluation Criteria

C. Leverage• Describe how non-state funding will be

leveraged to complete the project.

Considerations:• Amount of non-state funding used for project• Ratio of non-state to state funding

Evaluation Criteria

D. Legal Obligations and Mandates• Describe any court orders, federal mandates or

state laws that require the project’s completion.

Considerations:• Do existing laws make the project feasible?• Is the agency is under direct order to complete

the project?• Is the project needed to meet minimum federal

or state requirements?

Evaluation Criteria

E. Impact on Service to the Public• Describe how the proposed project improves

the level of service provided by the agency.

Considerations:• Does the service already exist within other

agencies?• Does the project focus on a service that is

currently a high priority public need?

Evaluation Criteria

F. Urgency of Maintenance Needs• Describe how project will maintain or restore

essential service.

Considerations:• Is the service currently interrupted or in

imminent danger of being interrupted?• Will project restore service?• Is the project the most cost-effective way to

restore or maintain service?

Evaluation Criteria

G. Prior Phases• Describe any prior expenditures and completed

phases for the project.

Considerations:• Has the project received prior funding?• Does the project require additional funding in

order to be fully operational?

Evaluation Criteria

H. Agency Mission and Strategic Goals• Describe how the project advances the mission

of the agency.

Considerations:• Does the project address a goal outlined in the

agency strategic plan?• What is the project’s priority among other

projects proposed by the agency?

Evaluation Criteria

I. Safety and Health• Describe how the project addresses health-

related environmental and safety impacts.

Considerations:• Addresses a health-related environmental or

safety hazard• Reduces risk to the public or to state employees

Cost Estimation & Phasing

Cost Estimation

• Be as accurate as possible• Some options:• Submit a professional estimate• Use recently completed projects to estimate

costs, if similar to request• Use industry-standard sources to estimate (RS

Means)• Contact DCAM-CAP for assistance with

estimating your project costs

Project Phasing

• Schedule your requests over the eight year period of the plan

• Phase you projects by year according to what you can accomplish• Ex: project phased over four years• Year one: Pre-design and A&E• Year two: 30% of construction funding• Year three: 70% of construction funding• Year four: FF&E funding

Submittal Expectations

How to avoid a submittal kickback

• Ask yourself, “What information would I need to make an approval recommendation on this request?”

• Keep it concise while providing adequate information

• Upload relevant and accurate supporting documents

• Answer all questions• Self-evaluate your submittals• Meet the June 30th deadline

Technical Training for Hyperion

Position BudgetingOperational BudgetingStrategic Plan

Statewide Goals & TopicsKey Performance Indicators

Capital BudgetingCAFR

Training – UPKencoreupk.ok.gov/kcenter

System - Hyperionhttps://encore.ok.gov

TRAINING | UPK

User Productivity Kit (UPK) is the training tool for project encore.

• Watch a recording of the task being completed with on-screen instructions in a simulated Hyperion system

• Practice completing the task with step-by-step instructions in a simulated Hyperion system.

• Test your way through each topic, with instructions only being provided when an incorrect action is performed.

• On-screen instructions for assistance though a task while you are working in the live system

• Save the instructions in a word document, so you can reference or print them on convenience.

1 2 3 4 5

Let’s Practice!

Key Takeaways• UPK is the training environment – you will always

have access to this if you get stuck. encoreupk.ok.gov/kcenter

• To enter your request, the live system is https://encore.ok.gov

• When logging in, always Navigate -> SOKPLAN & Check your User Variable Options!

• When you are finished submit for approval and notify the Capital Asset Management Division.

Next Steps• Submit OMES Form 301 EPLAN, System Access• Access to live Hyperion system

• Stay tuned for upcoming work sessions in May and June

• Enter requests by June 30th

• DCAM-Planning will schedule meetings with submitting agencies in August to discuss requests

Questions?

Ben Davis, AICPDirector, [email protected](405) 522-1652

Justin HenryAssistant [email protected](405) 522-1650

http://ok.gov/DCS/Capital_Planning

hyperion workshop capital outlay request submissions

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